Dan Wasiolek, senior equity analyst at Morningstar, said that Osaka was already seeing over 12 million international visits pre-Covid and the new development should attract many of those already visiting, plus new patrons from parts of China.
“This view is buoyed by the resort’s proximity to Osaka’s airport and business centre, which should be enhanced by new transportation infrastructure,” he notes.
The main partners in the consortium that will develop the Osaka IR are MGM Resorts International, Japanese ORIX-Corp. It will be developed on a 490,000 meter squared parcel of land in Yumeshima, an artificial island in Osaka Bay.
The project, that is expected to include Japan’s first casino, conference centre, hotel, theatre and exhibition hall, is set up to open in 2029 or 2030.
The Osaka IR initially targets US$3.6bn of revenue annually, mostly from the gaming business and forecasts it will attract six million international tourists and 14 million domestic visitors. This positive outlook is bolstered by the resort’s proximity to Osaka’s business district and airport, which should be improved by new transit infrastructure.
The Osaka IR is not expected to divert traffic from established gambling regions in Asia such as Macau, Singapore or the Philippines. Rather, it seems likely to attract new players from Chinese regions closer to Japan while also attracting visitors globally.
Source: GMB / SiGMA News
